VAT Directive and Article 44 - Selling services outside EU

Question

I have a company in the European Union (EU) and I am selling electronic services to all countries. Since I am located in the EU, the following rules apply:

• When selling to a customer from my country, I need to charge my country tax
• When selling to an EU customer with a valid VAT ID, I need to write "Reverse Charge - VAT exempt under Article 44 Directive 2006/112/ES" on the invoice and not charge the VAT tax.
• When selling to an EU customer without a valid VAT ID, I charge tax from their country.
• When selling outside the EU, no tax.

If I sell outside the EU, do I need to put the "Reverse Charge..." clause on the invoice or not?

Answer 1

I'm not sure if it's the same for every EU country, but in Belgium: Yes, you have to include a clause on your invoice that explains why you are not charging VAT.

It used to be that you had to point to the exact article in the (Belgian) VAT law. Similar to your second example.

In Belgium, at least, this has been simplified last year and you can just put a simpler clause on your invoice that comes down to "Reverse charge - VAT exempt". No need to point to the exact article.

Check in your local law book or with a local accountant to be sure.